Williams is also announcing a significant acceleration of the planned
increase in dividends to its shareholders. It is raising its expected
full-year 2012 dividend to shareholders from $1.09 per share to $1.20
per share. The new amount is a 55 percent increase over the full-year
2011 dividend to shareholders of $0.775 per share. The company is also
now expecting to increase its dividend by 20 percent in both 2013 and
2014.

The company is accelerating its planned dividend increases as a result
of Williams
Partners’ Caiman acquisition and because it now expects a
significant, sustained contribution to the dividend from its Midstream
Canada & Olefins segment. Midstream Canada & Olefins includes Williams’
operations in the United States and Canada focused on recovering and
producing ethylene, propylene, NGLs and other related products.

The expected quarterly increases in Williams’ dividend are subject to
quarterly approval of Williams’ board of directors.

Support for Williams Partners Acquisition

Williams intends to make an additional investment in Williams Partners
of approximately $1 billion to facilitate the Caiman acquisition.
Williams intends to purchase approximately 16.3 million Williams
Partners limited-partner units at a price equal to the price of the
units Williams Partners will issue to Caiman. Please see the
partnership’s news release today for complete details on the acquisition.

Williams plans to fund its additional equity investment in Williams
Partners with a combination of public equity, debt and available cash.
Williams has also agreed to temporarily waive through 2013 the general
partner incentive distributions with respect to Williams Partners’
limited-partner units to be issued to Caiman and Williams. Williams
estimates the foregone IDRs would have yielded approximately $26 million
in 2012 and $42 million in 2013.

“Williams Partners’ Caiman acquisition and the comprehensive and
balanced financing plan that we have put together is a great example of
how our MLP strategy supports delivering high dividends and high growth
to our shareholders,” said Alan Armstrong, president and chief executive
officer. “Williams brings a strong set of capital resources that can
help drive substantial growth opportunities at Williams Partners, which
benefits both entities.”

Guidance Update

Williams’ 2012-13 guidance is also being updated and 2014 guidance is
being introduced. The new guidance reflects the Caiman acquisition’s
expected contribution of approximately $40 million, $200 million and
more than $400 million in Williams Partners’ adjusted segment profit
plus DD&A in 2012, 2013 and 2014, respectively. Williams expects the
segment profit plus DD&A contribution to continue increasing
substantially beyond the current 2012-14 guidance period. Williams is
also increasing its expectation for NGL margins in 2012-13 based on
lower expected natural gas prices.

Williams expects Williams Partners’ Caiman acquisition to be strongly
accretive to cash flow and earnings per share in 2014 and beyond.
Williams expects to receive cash distributions of approximately $1.5
billion from Williams Partners in 2014, a 65-percent increase over the
approximately $910 million it received from Williams Partners in 2011.

Williams’ new guidance midpoints for expected adjusted earnings per
share are $1.35 in 2012, $1.55 in 2013 and $1.80 in 2014. The projected
adjusted earnings per share amount of $1.80 in 2014 is a 46-percent
increase over Williams’ 2011 adjusted earnings per share of $1.23.

Capital expenditure guidance for 2012-13 is being updated for Williams
Partners’ Caiman acquisition’s purchase price and expected post-closing
growth capital expenditures are approximately $500 million in 2012 and
approximately $590 million in 2013. Approximately $250 million in growth
capital expenditures associated with the Caiman acquisition are planned
for 2014.

Williams Partners and Williams are hosting a conference call with
investors tomorrow at 9 a.m. EDT to discuss the Caiman acquisition and
new guidance. A presentation and a link to the live webcast of
tomorrow’s event will be available shortly at www.williams.com
and www.williamslp.com.
A limited number of phone lines will be available at (888) 438-5449.
International callers should dial (719) 457-0349.

Non-GAAP Measures

This press release includes certain financial measures – adjusted
segment profit, adjusted earnings and adjusted earnings per share – that
are non-GAAP financial measures as defined under the rules of the
Securities and Exchange Commission. Adjusted segment profit, adjusted
earnings and adjusted earnings per share measures exclude items of
income or loss that the company characterizes as unrepresentative of its
ongoing operations. Management believes these measures provide investors
meaningful insight into the company's results from ongoing operations.

This press release is accompanied by a reconciliation of these non-GAAP
financial measures to their nearest GAAP financial measures. Management
uses these financial measures because they are widely accepted financial
indicators used by investors to compare a company's performance. In
addition, management believes that these measures provide investors an
enhanced perspective of the operating performance of the company and aid
investor understanding. Neither adjusted segment profit, adjusted
earnings nor adjusted per share measures are intended to represent an
alternative to segment profit, net income or earnings per share. They
should not be considered in isolation or as substitutes for a measure of
performance prepared in accordance with United States generally accepted
accounting principles.

About Williams (NYSE: WMB)

Williams is one of the leading energy infrastructure companies in North
America. It owns interests in or operates 15,000 miles of interstate gas
pipelines, 1,000 miles of NGL transportation pipelines, and more than
10,000 miles of oil and gas gathering pipelines. The company’s
facilities have daily gas processing capacity of 6.6 billion cubic feet
of natural gas and NGL production of more than 200,000 barrels per day.
Williams owns a 72-percent ownership interest in Williams Partners L.P.
(NYSE: WPZ), one of the largest diversified energy master limited
partnerships. Williams Partners owns most of Williams’ interstate gas
pipeline and domestic midstream assets. The company’s headquarters is in
Tulsa, Okla. More information is available at www.williams.com.

Our reports, filings, and other public announcements may include
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements
relate to anticipated financial performance, management’s plans and
objectives for future operations, business prospects, outcome of
regulatory proceedings, market conditions and other matters. We make
these forward-looking statements in reliance on the safe harbor
protections provided under the Private Securities Litigation Reform Act
of 1995.

All statements, other than statements of historical facts, included
in this report that address activities, events or developments that we
expect, believe or anticipate will exist or may occur in the future, are
forward-looking statements. Forward-looking statements can be identified
by various forms of words such as “anticipates,” “believes,” “seeks,”
“could,” “may,” “should,” “continues,” “estimates,” “expects,”
“forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,”
“planned,” “potential,” “projects,” “scheduled,” “will” or other similar
expressions. These forward-looking statements are based on management’s
beliefs and assumptions and on information currently available to
management and include, among others, statements regarding:

Amounts and nature of future capital expenditures;

Expansion and growth of our business and operations;

Financial condition and liquidity;

Business strategy;

Cash flow from operations or results of operations;

The levels of dividends to stockholders;

Seasonality of certain business components;

Natural gas, natural gas liquids and crude oil prices and demand.

Forward-looking statements are based on numerous assumptions,
uncertainties and risks that could cause future events or results to be
materially different from those stated or implied in this report. Many
of the factors that will determine these results are beyond our ability
to control or predict. Specific factors that could cause actual results
to differ from results contemplated by the forward-looking statements
include, among others, the following:

Whether we have sufficient cash to enable us to pay current and
expected levels of dividends;

Availability of supplies, market demand, volatility of prices, and
the availability and cost of capital;

Inflation, interest rates, fluctuation in foreign exchange, and
general economic conditions (including future disruptions and
volatility in the global credit markets and the impact of these events
on our customers and suppliers);

The strength and financial resources of our competitors;

Ability to acquire new businesses and assets and integrate those
operations and assets into our existing businesses, as well as expand
our facilities;

Development of alternative energy sources;

The impact of operational and development hazards;

Costs of, changes in, or the results of laws, government
regulations (including safety and climate change regulation and
changes in natural gas production from exploration and production
areas that we serve), environmental liabilities, litigation, and rate
proceedings;

Risks related to strategy and financing, including restrictions
stemming from our debt agreements, future changes in our credit
ratings and the availability and cost of credit;

Risks associated with future weather conditions;

Acts of terrorism, including cybersecurity threats and related
disruptions;

Additional risks described in our filings with the Securities and
Exchange Commission.

Given the uncertainties and risk factors that could cause our actual
results to differ materially from those contained in any forward-looking
statement, we caution investors not to unduly rely on our
forward-looking statements. We disclaim any obligations to and do not
intend to update the above list or to announce publicly the result of
any revisions to any of the forward-looking statements to reflect future
events or developments.

In addition to causing our actual results to differ, the factors
listed above may cause our intentions to change from those statements of
intention set forth in this announcement. Such changes in our intentions
may also cause our results to differ. We may change our intentions, at
any time and without notice, based upon changes in such factors, our
assumptions, or otherwise.

Investors are urged to closely consider the disclosures and risk
factors in our annual report on Form 10-K filed with the SEC on Feb. 28,
2012, and our quarterly reports on Form 10-Q available from our offices
or from our website at www.williams.com.

Segment profit guidance – reported to adjusted

Dollars in millions

2012 Guidance

2013 Guidance

2014 Guidance

Low

Midpoint

High

Low

Midpoint

High

Low

Midpoint

High

Reported segment profit:

Williams Partners (WPZ)

$

1,730

$

1,975

$

2,220

$

2,025

$

2,275

$

2,525

$

2,125

$

2,400

$

2,675

Midstream Canada & Olefins

250

313

375

325

400

475

450

550

650

Other

(5

)

-

5

-

-

-

-

-

-

Total Reported segment profit

1,975

2,288

2,600

2,350

2,675

3,000

2,575

2,950

3,325

Adjustments:

Acquisition Transaction Costs

50

50

50

-

-

-

-

-

-

Total Williams Partners Adjustments

50

50

50

-

-

-

-

-

-

Total Midstream Canada & Olefins Adjustments

-

-

-

-

-

-

Total "Other" Adjustments

-

-

-

-

-

-

-

-

-

Total Adjustments

50

50

50

-

-

-

-

-

-

Adjusted segment profit:

Williams Partners (WPZ)

1,780

2,025

2,270

2,025

2,275

2,525

2,125

2,400

2,675

Midstream Canada & Olefins

250

313

375

325

400

475

450

550

650

Other

(5

)

-

5

-

-

-

-

-

-

Total Adjusted segment profit

$

2,025

$

2,338

$

2,650

$

2,350

$

2,675

$

3,000

$

2,575

$

2,950

$

3,325

Reconciliation of forecasted reported income from continuing
operations